Bank monkeys and their financial advice. Eddie Jordan sues HSBC

[dragosaurus]

This sounds like a nice scam.

Eddie Jordan sues HSBC over ‘low risk’ £47million loan that triggered £5m LOSS

As per a report from The Times, Jordan claims that HSBC had encouraged him to take out a £47m loan and invest it into the scheme, with only a ‘stressed scenario’ capable of triggering losses up to 0.98 per cent, while north of one per cent was not possible.

But, roughly 10 per cent of the value was lost, Pendragon apparently having made it clear that only a loss of up to one per cent was acceptable.

Jordan, who has a reported net worth of $600m (£470.3m), is seeking a £4.94m payment from HSBC, the difference between his investment total and the ultimate bond value.

HSBC apparently gained £2.9m in interest on the loan and £1.3 million in management fees.

Owner of the Jordan Grand Prix team, which competed in Formula 1 from 1991-2005, the 76-year-old Irishman remains a keen observer of the F1 scene, and recently cast a worrying verdict over the Audi F1 project, as the German brand prepares to join the grid in 2026 via a takeover of Sauber.

"HSBC apparently gained £2.9m in interest on the loan and £1.3 million in management fees."

Nice move, they made a good chunk of cash. Someone might be getting a promotion.

 

[YoungLansk]

If there is no written proof of the 1% max loss ( don't think there is in this case ) he wont win the case or get paid.. But Yeah banks are legal scams all around.

 

[kilor]

Bankers are smart, they know how to scam people and get away with it without anyone able to pursue them.

 

[wellington]

This sounds like a nice scam.

Eddie Jordan sues HSBC over ‘low risk’ £47million loan that triggered £5m LOSS



"HSBC apparently gained £2.9m in interest on the loan and £1.3 million in management fees."

Nice move, they made a good chunk of cash. Someone might be getting a promotion.

Before the GFC Natwest did similar with me encouraging me to buy their “safe bonds” roughly month and half before it all started to melt down